In the field of cryptocurrency trading, perpetual contracts have consistently attracted the attention of global investors with their unique charm. This financial derivative, which has no expiration date and allows investors to hold positions indefinitely, offers the potential for high returns due to its high leverage characteristics, occupying a dominant position in the global crypto market with daily trading volumes exceeding $50 billion. However, in the United States, an important landscape of the global financial market, perpetual contracts have previously been under strict restrictions. For a long time, American investors could only watch enviously as they observed the booming perpetual contract trading on overseas platforms, unable to participate.
However, on September 5, a shocking piece of news hit the U.S. cryptocurrency trading community — the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are deeply considering taking a series of significant measures to introduce perpetual swaps into the U.S. regulated market system. This news was like a stone thrown into a calm lake, instantly raising ripples and sparking widespread attention and heated discussions in the market.
Currently, perpetual swaps are mainly active in the offshore cryptocurrency market, contributing a remarkable 76% to the astonishing daily trading volume of $80 billion across the world's top ten exchanges, showcasing their strong market influence. However, the regulatory environment in the U.S. has erected numerous barriers, with strict regulatory requirements and compliance restrictions making it difficult for perpetual swaps to take root in the U.S. Coinbase, Kraken, and other compliant platforms in the U.S. can only watch helplessly as offshore exchanges like Bybit and OKX profit immensely in the perpetual contract field, sharing a multi-billion dollar fee cake each year.
Now, the latest moves by the SEC and CFTC undoubtedly bring new hope to U.S. cryptocurrency traders and related professionals. Once these new regulations are smoothly implemented, perpetual swaps that meet investor protection and risk management standards will be able to be listed on SEC and CFTC regulated trading platforms. The significance of this transformation is profound; on the one hand, it is expected to reduce the large-scale outflow of domestic capital to overseas cryptocurrency trading platforms. Previously, due to the lack of legal and compliant perpetual contract trading channels in the U.S., many investors had to take risks to pursue more diversified investment options and higher returns on overseas platforms, which not only resulted in a substantial loss of potential funds from the domestic financial market but also brought various potential risks to investors themselves, such as security issues due to regulatory gaps and opaque trading rules. After the new regulations are implemented, investors will be able to trade perpetual swaps on platforms that are strictly regulated domestically, greatly ensuring fund safety and trading transparency, and the phenomenon of capital outflow is expected to be effectively curbed.
On the other hand, for U.S. traders, this means they will welcome high-quality products with transparent leverage limits and robust risk management. In the past, when participating in perpetual contract trading on overseas platforms, U.S. traders often faced issues such as opaque leverage multiples and inadequate risk management measures, which could lead to significant losses with a slight misstep. The perpetual swap products under SEC and CFTC regulation will adhere to strict regulatory standards, clearly stipulating leverage limits to ensure investors do not over-leverage for high-risk investments. Additionally, in terms of risk management, platforms will establish comprehensive risk warning, margin management, and other mechanisms to safeguard investors' trading safety from multiple dimensions, allowing investors to participate in market trading with greater peace of mind.
In fact, this significant regulatory adjustment was not without warning. Since the Trump administration took office, there has been a notable shift in the attitude towards crypto assets, with a series of policy measures reflecting acceptance and support for the cryptocurrency market. Earlier, the U.S. Commodity Futures Trading Commission (CFTC) suddenly withdrew two key consultation documents in early April, which was sharply interpreted by the market as an important signal of a regulatory shift — digital asset derivatives would be subject to the same rules as traditional commodities, effectively ending the era of 'special treatment' for cryptocurrencies and clearing some legal hurdles for the compliant development of perpetual contracts and other crypto derivatives. Subsequently, on April 21, the CFTC publicly solicited opinions on perpetual contracts and derivatives markets, with acting chair Caroline Pham stating: 'The CFTC is returning to its roots, publicly soliciting opinions on perpetual contracts that exchanges and market participants have been highly focused on recently.' Just two days later, Bitnomial, a designated contract market (DCM) under CFTC regulation, swiftly self-certified a legal perpetual futures contract. This series of events indicates that the attitude of U.S. regulatory agencies towards perpetual contracts is gradually shifting from strict restrictions to actively exploring paths for regulated development.
The recent consideration by the SEC and CFTC to introduce perpetual contracts demonstrates the U.S. regulatory body's commitment to the cryptocurrency market's importance and proactive guidance. For the U.S. cryptocurrency industry, this will be a significant milestone transformation. It will not only provide U.S. traders with more diversified investment tools, further invigorating the domestic cryptocurrency trading market, but it may also attract more global cryptocurrency-related companies and investors to focus on the U.S. market, enhancing America's voice and influence in the global cryptocurrency financial sector. In the future, as relevant regulations gradually improve and are implemented, we eagerly await what new developments the U.S. cryptocurrency market will bring.
